Blackstone to Buy PS Business Parks for $7.6 Billion

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Blackstone to Buy PS Business Parks for $7.6 Billion
27 Apr 2022
4 min read

News Synopsis

Blackstone Inc is acquiring PS Business Parks Inc. for about $7.6 billion, including debt, in a bet on suburban office space and business parks after the Covid-19 pandemic hit the commercial real estate market.

This deal is the latest in Blackstone's US real estate, as the pandemic forms new norms. Last week, private equity firms agreed to buy student-housing owner American Campus Communities Inc. for about $12.8 billion, including debt, betting on students returning to campus.

PS Business Park, a real estate investment trust, owns and operates industrial and low-rise suburban offices and business parks primarily in California, Miami, Texas, and northern Virginia. As of March 30, the company owns 96 properties and 4,900 tenants. The company's portfolio also includes 800 residential units.

Blackstone announced on Monday that it will pay $187.50 in cash for each issued share of PS Business Parks. This is a premium that is about 15% higher than the volume-weighted average share price of PS Business Parks shares over the last 60 days. The transaction is expected to close in the third quarter of 2022.

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